Download the Schwab app from iTunes®Get the AppClose

  • Find a branch
To expand the menu panel use the down arrow key. Use Tab to navigate through submenu items.

Open an Account

Trader Q&A: What Sectors Are Likely to Advance Post-election and Beyond?

Watch Schwab’s trading specialists discuss their thoughts on which sectors will be impacted in the long run by the presidential election of 2016.

Click to show the transcript

Next question from Terry in Georgia. What sectors do you expect to advance and decline after the election?

Randy Frederick: Yeah, I think we kind of - we kind of hit on this already, I think.

Lou Mercer: Yeah, it doesn't really matter who wins the presidency, right? I think for the most part, industrials are going to do well -

Randy Frederick: Industrials seem to be the favorite for regardless of what the outcome is, because whether or not we actually get infrastructure spending and a fiscal stimulus in that form, we do know that both of the Presidents favor that. What's I think - I think this is probably a good time to bring up the importance of this, is that the President doesn't make laws. The President can veto or approval a law, but Congress makes laws. And so if you end up with gridlock, a lot of what the two candidates are promising are going to be very difficult to get passed anyway.

But that said, it's very likely the market will react positively, and the industrial sector could very well perform ahead of what might actually ultimately happen, because the market generally tries to front run what's going to happen. It's one of the reasons why we see interest rates going up already, because the market expects the Fed's going to raise. So -

See all videos

Related Content

Schwab has tools to help you mentally prepare for trading

Learn more >

Talk trading with a Schwab specialist anytime.
 
Call 888-245-6864
M-F, 8:30am - 9:00pm EST

Get 500 Commission-Free Online Equity and Options Trades for Two Years

Learn More >

Important Disclosures

The information provided here is for general informational purposes only and should not be considered an individualized recommendation or personalized investment advice. The investment strategies mentioned here may not be suitable for everyone. Each investor needs to review an investment strategy for his or her own particular situation before making any investment decision. Examples are not intended to be reflective of results you can expect to achieve.

All expressions of opinion are subject to change without notice in reaction to shifting market conditions.

Past performance is no indication (or "guarantee") of future results.

Schwab does not recommend the use of technical analysis as a sole means of investment research.

Schwab Trading Services™ includes access to StreetSmart® trading platforms, the Schwab Trading Community, and Schwab trading specialists (a Schwab brokerage account is required). There are no fees to use Schwab Trading Services. Other account fees, optional data fees, fund expenses, and brokerage commissions may apply. Schwab reserves the right to restrict or modify access at any time. Schwab brokerage account online applications that have the “Schwab Trading Services” box checked will automatically be enrolled. For questions, call 888-245-6864 to speak to a Schwab Trading Services representative.

(0117-RXJ3)

Thumbs up / down votes are submitted voluntarily by readers and are not meant to suggest the future performance or suitability of any account type, product or service for any particular reader and may not be representative of the experience of other readers. When displayed, thumbs up / down vote counts represent whether people found the content helpful or not helpful and are not intended as a testimonial. Any written feedback or comments collected on this page will not be published. Charles Schwab & Co., Inc. may in its sole discretion re-set the vote count to zero, remove votes appearing to be generated by robots or scripts, or remove the modules used to collect feedback and votes.